Samsung Electronics will distribute special management bonuses to employees in its semiconductor division between late March and early April 2027.
According to industry sources on October 7, Samsung's Device Solutions (DS) division announced the details of the special management bonus for employees. The proposal for the bonus will be presented at the regular shareholders meeting in March 2027, and the distribution process will follow the meeting's approval.
The special management bonus is a new system established during wage negotiations in May, separate from the existing excess profit incentive (OPI). It will be funded by 10.5% of the DS division's operating profit, with no upper limit on the amount distributed.
Forty percent of the bonus pool will be allocated equally among all DS employees, while the remaining 60% will be distributed based on departmental performance. Individual bonus amounts will be calculated by multiplying a base amount by the bonus rate, which will be announced in early February 2027.
Eligible recipients include employees who are on the payroll as of December 31, 2026, as well as some on parental leave or military service. Those who have worked less than one month this year or are currently on leave or suspension will be excluded from eligibility.
The bonuses will be paid in company stock after deducting taxes, insurance premiums, and donations. One-third of the shares can be sold immediately, while the remaining two-thirds will be subject to selling restrictions for one and two years, respectively.
The tax year for this bonus will be 2027. To minimize additional tax liabilities during year-end tax settlements, the company will withhold income tax at the highest rate of 45%. Including local income tax, the total withholding rate will be 49.5%. Deductions for health insurance and employment insurance will also apply.
Samsung and its labor union are also pursuing a joint donation agreement linked to the special bonuses. DS employees will have the option to voluntarily donate between 0.2% and 1.0% of their bonuses. Employee contributions will be matched 1:1 by the company, with specific donation recipients and operational methods to be determined through further discussions.
Individual donation agreements will be conducted this month. Following that, the bonus rates for each department will be announced in February 2027, and the proposal for distribution will be presented at the March shareholders meeting, with actual payments expected to begin at the end of that month.
Choi Seung-ho, chairman of the Samsung Electronics branch of the Korean Metal Workers' Union, stated, "The donation agreement will be led by the chairman and the executive team, and we will encourage participation from union members. We will continue to discuss the donation recipients and operational methods with the company."
* This article has been translated by AI.
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